Job Ready Guide: Construction risk management-Taking control of change orders

Post on 11-Aug-2014

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Most construction projects have at least 10% additional costs due to changes. This guide shows how to manage the change order process to recoup costs.

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Job Ready Guide Construction risk management

Taking control of change orders By Leslie Shiner and Deb Carpenter-Beck

Change happens Change happens Change happens

You start a job, and everything is running according to plan.

Then you hit unexpected soil conditions, “while you’re here” requests, or other out-of-scope circumstances.

Do you get paid for all the work you do?

Are you ready to overcome common change order challenges?

•  Set expectations about change orders from the start.

•  Clearly lay out the scope of work.

•  Provide detailed descriptions of work to avoid confusion about what is in scope.

•  Provide customers with a sample change order form.

Before contract signing

•  Don’t start any work without a signed change order.

•  Get payment for a change order prior to any work.

•  Charge something on the first few change orders to set a precedent.

•  Create a change order even if you won’t charge the customer.

Ideas to help manage the process

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